A cryptocurrency tracking exchange-traded fund (ETF) for retail investors is reported to be rolled out by Huboi Tech, a fund manager located in Hong Kong. 

In specific, Huboi Tech reportedly proposed to the Securities and Futures Commission (SFC) for its crypto ETF – which is mainly for retail traders with a total amount of assets below HK$8 million ($1 million). 

Mr. Romeo Wang, the VP of the firm, emphasized that investors will be more beneficial in terms of security from a crypto ETF. He also noted that they are actively engaged with the SFC and also hope to prolong positive communication with the aim to roll out regulated crypto ETF products. 

Huobi is also relying on the recent lifting of the restrictions on crypto ETFs for regular investors, which were previously only available to professional traders. Hong Kong’s top regulatory organizations issued a joint circular allowing retail traders to participate in the crypto ETF market, which is traded on licensed exchanges in the United States and the United Kingdom.

The circular divided digital assets products into two classes: complex and non-complex, with only the latter being available to retail traders.

With a few exceptions, Hong Kong has enacted severe regulations limiting crypto trading for professionals. Professional traders with holdings of above $1 million are allowed to trade digital assets through regulated offerings.

Huobi Tech, formerly Pantronics Holdings, has switched its concentration away from electronic products and into the virtual asset-based sector. Despite sharing the same name with the prominent cryptocurrency exchange Huobi Global, the Hong Kong-based publicly traded corporation operates independently.

About its background, Huobi Technology is a fund manager focused on the digital asset market. The company started crypto over the counter (OTC) desk in the first week of March, prior to its current proposal for a retail crypto ETF.